After the powerful New Year rally, U.S. stocks and ETFs now face a moment of truth.
U.S. stocks and ETFs started 2013 with a bang as the Dow Jones Industrial Average (NYSEARCA:DIA) gained 331 points from its close on December 31st to Friday, January 4th. The S&P 500 (NYSEARCA:SPY) jumped 2.8% over the same period while the Nasdaq 100 (NYSEARCA:QQQ) climbed 2.4%.
The catalyst, of course, was the partial resolution to the fiscal cliff debate and the positive mood was also bolstered by relatively good news on the economic front.
On a technical basis, major U.S. indexes like the S&P 500 (NYSEARCA:SPY) stand at significant resistance levels, and fundamental factors like earnings season, the upcoming debt ceiling debate and future policy by the Federal Reserve now all come into sharper focus.
The New Year is Here. 2013 ETF Trading Signals>>
The next few days and weeks will likely be volatile as stocks and ETFs stand at a critical crossroads…